Sat, Dec 21, 2002 - Page 10 News List

Cable guys and TV manufacturers reach peace accord

GOING DIGITAL The deal will allow digital signals to be directly piped into TV sets without extra equipment, clearing a major hurdle in the transition to digital TV

REUTERS , WASHINGTON

Television-set makers and US cable operators reached a peace accord on Thursday to allow digital cable signals to be directly piped into television sets without extra equipment, clearing a major hurdle in the transition to digital television.

The deal, which requires approval from the Federal Communications Commission, would bury the hatchet between two industries that have squabbled for years over how to offer the higher-quality pictures and advanced services that digital television promises.

If approved by the FCC, the roughly two-thirds of US households that subscribe to cable-TV services would be able to enjoy digital pictures over high-definition sets without shelling out more money, as some consumers do now, for set-top boxes to read the signals.

Industry officials hailed the agreement as a major breakthrough that would serve as the foundation of billions of dollars of future sales, though they cautioned that new cable-ready sets would not be available until 2004.

"This wears down almost totally the largest obstacle or bump for HDTV," said Gary Shapiro, president of the Consumer Electronics Association trade group.

But another major question -- the extent to which consumers should be able to record shows for their personal use -- remains unresolved.

While the agreement outlines some copy-protection guidelines, it was drafted without the input of Hollywood or consumer groups, which have strong opinions and powerful friends in government.

Originally designed to be complete by 2007, the switch to digital has yet to take off due to copyright concerns, limited programming and high equipment prices. Congress had threatened to step in to push the transition forward and the FCC ordered television-set makers to include digital tuners in large sets starting in 2004 and in most new sets by mid-2007.

The deal would establish nationwide technical standards for cable systems, ensuring that high-definition television sets would be able to plug into nearly any cable system in the country and receive digital signals without requiring costly extra equipment.

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